Employment 2025

USA – NORTH CAROLINA Law and Practice Contributed by: Phillip Strach, Alyssa Riggins, Nathaniel Pencook and Cassie Holt, Nelson Mullins Riley & Scarborough LLP

9.3 Costs Prevailing party costs are governed by statute in North Carolina. Currently, the North Carolina Court of Appeals has conflicting opinions as to whether awarding costs to prevailing parties under the main costs statute, North Carolina General Statutes Sec - tion 6-20, is mandatory or discretionary. The North Carolina Supreme Court has yet to take up this issue. But what is clear is that once a court moves forward with awarding prevailing party costs, those costs are limited to very specific enumerated categories under North Carolina General Statutes Section 7A-305. And counsel seeking recovery of costs must usually prove that the costs incurred were reasonable and neces - sary expenses in prosecuting or defending the case. The enumerated categories most pertinent to employ - ment law litigation include: • witness fees; • expenses incurred in service of process by certified mail or by publication; • costs on appeal of the original transcript of testi - mony; • personal service and civil process fees; • mediator fees; • deposition stenographic and videographic fees; • deposition transcript costs; and • expert witness fees.

well as those provided by certain Commodity Futures Trading Commission (CFTC) regulations. While arbitration agreements are common tools to determine the forum for a dispute before it arises, there are a few important considerations for employ - ers looking to implement them. By way of example, the agreement must be mutually agreed upon; it can - not be the product of force or coercion on the employ - ee. Similarly, although the agreement may be drafted to set a specific forum, rules, and type of arbitration or arbitrator, the terms cannot excessively favour the employer at the expense of the employee. Drafting a pre-dispute arbitration agreement can be helpful to an employer for many reasons. However, it is recommended that employers speak with counsel to ensure the agreement is enforceable and effective.

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